A monumental shift is now in effect for pub operators in Glasgow and across Scotland. The Tied Pubs (Scotland) Act 2021 and the new Scottish Pubs Code represent the most significant industry reforms in a generation, providing a vital toolkit for tenants to secure a fairer, more balanced future.
This new legislation directly addresses the long-standing challenges faced by many tied tenants, from restrictive brewery ties to navigating agreements that have not always favoured the person behind the bar.
Now in force, the Code aims to rectify this historical imbalance. It is built on three core principles:
- Fair and lawful dealing between tenants and pub-owning businesses.
- Ensuring a tied tenant is no worse off than a free-of-tie counterpart.
- A fair sharing of risk and reward in your tenancy agreement.
Understanding your new rights under this framework is not just an option, it’s essential for the survival and future growth of your business.
What Is the New Scottish Pubs Code?
At its heart, the Scottish Pubs Code is a new rulebook designed to govern the relationship between tied pub tenants and their landlords. It was created by the landmark Tied Pubs (Scotland) Act 2021, with the specific day-to-day rules detailed in the Scottish Pubs Code Regulations 2024. To ensure fairness, the Code is overseen by an independent watchdog, the Scottish Pubs Code Adjudicator (SPCA), who has the power to settle disputes and make sure everyone plays by the new rules.
What the Scottish Pubs Code Means for Pub Tenants
The new Code gives tied tenants in Scotland a powerful set of rights designed to create a fairer business relationship. Here’s what you need to know:
The Right To A Free-of-Tie (Market Rent Only Option)
This represents the most significant change. Starting from 30 June 2025, you gain the right to request a free-of-tie Market Rent Only (MRO) lease at the halfway point of lease. Importantly, there is an exception allowing tenants to make this request during the six-month period immediately before reaching the lease’s halfway mark (Regulation 15A – The Scottish Pubs Code Regulations 2024). This provision empowers you to:
- Pay a fair, independently assessed market rent.
- Buy beer and other supplies from any supplier you choose.
- Potentially increase your pub’s profitability by escaping high tied-product prices.
The Right to a Guest Beer
Pub tenants now have the right to sell at least one guest beer of your choice outside of the tie, opening the door to showcase local or craft brews that resonate with your customers. To qualify, the guest beer must come from a brand producing no more than 5,000 hectolitres per year. New beers are also eligible, provided their estimated annual production stays within this limit. This gives you greater flexibility to respond to customer demand and diversify your beer selection with unique, independent offerings.
The Right to a Fair Rent Assessment
No more surprise rent hikes. Landlords must now provide a detailed rent assessment proposal, showing exactly how the new rent was calculated, including a profit & loss forecast for your pub. This gives you the evidence you need to challenge any unfair or unreasonable proposals.
The Right to a Fair and Transparent Partnership
The Code introduces several new rules to ensure you are treated professionally and protected from unfair practices:
- Freedom from Ties: Landlords can no longer force you to take their suppliers for gaming machines or pool tables.
- Full Disclosure: New tenants must be advised to get training and must receive a detailed information pack before entering into a lease.
- Documented Conversations: Business Development Managers (BDMs) must provide written notes after meetings, ending “he said, she said” disputes.
- Protection from Retaliation: You are legally protected from any negative consequences for exercising your rights under the Code, allowing you to act with confidence.
The Pub Tenants’ Next Step: Prepare Now, Don’t Delay
The Scottish Pubs Code is more than just a regulatory document; it’s a practical toolkit to help you build a more sustainable and profitable pub business. While the Code provides a clear legal framework, making it work for your venue requires local insight and proactive action.
- Tourism and Events: For pubs near the SEC and OVO Hydro, the guest beer right allows you to create a unique offering that captures the tourist and event crowds. For those in historic or conservation areas, like the Merchant City, an MRO lease offers the freedom to innovate, but changes must still align with planning constraints.
- Fair Dealing: The Code offers greater transparency. Pub-owning businesses must now provide more information, including details of their pricing. This increased transparency, enforced by the Scottish Pubs Code Adjudicator, is a cornerstone of Scottish licensee protection and strengthens your hand in all negotiations.
With a dedicated Scottish office in Edinburgh, MDE Pub Consultants provides expert, local support to publicans across the UK. Schedule a free consultation today to learn how we can support your business under the new Scottish Pubs Code.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
